"The profits of Warren Buffett's company improved 17% thanks to a relatively mild hurricane season and more paper investment gains this year as Berkshire Hathaway prepares for the legendary 95-year-old investor to relinquish the CEO title in January. But last month's $9.7 billion investment in OxyChem won't do much to diminish the $381.7 billion cash pile that Berkshire was sitting on at the end of September even though it is the biggest deal the company has made in years."
"The biggest thing on most investors' minds right now is that Buffett Vice Chair Greg Abel is set to succeed him as CEO in January, although Buffett will remain chairman at Berkshire. The Class A stock is well off its peak of $812,855, set just before Buffett surprised shareholders at the annual meeting in May by announcing he will step back."
"CFRA Research analyst Cathy Seifert said she expects investors will clamor for more details from Berkshire after Abel takes over, and that calls will also grow louder for the company to finally pay a dividend if it can't find better uses for all that cash. But with Buffett remaining chairman there may not be any immediate changes. "The lack of discussion and disclosure - I think has a lot of the investment community frustrated," Seifert said."
Berkshire Hathaway posted a 17% profit increase driven by a mild hurricane season and paper investment gains. The company made a $9.7 billion OxyChem investment but still held $381.7 billion in cash at the end of September. Warren Buffett will relinquish the CEO role in January while remaining chairman, and Vice Chair Greg Abel will succeed him. Class A shares sit well below their peak, and Berkshire did not repurchase shares in the quarter, implying management sees the stock as overvalued. Analysts expect demands for more disclosure and potential dividend discussion after the succession, though immediate changes are uncertain.
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